Luxury housing market reels as political buyers vanish post-regime change

Infograph: TBS

Highlights:

• Regime change caused collapse in luxury apartment sales
• Politically connected buyers vanished or were jailed post-election
• Dozens of high-value units now unsellable or refunded
• Sales in upscale areas dropped sharply since August 2024
• Entire real estate sector now struggling, not just luxury
• Developers halting new projects; urgent policy support requested

Bangladesh's luxury apartment market has suffered a major blow since last year's regime change, with numerous high-value deals collapsing as politically connected buyers—mostly linked to the ousted Awami League—fled the country or ended up in jail.

Developers say dozens of elite flats, some worth up to Tk21 crore, were reserved by former ministers, MPs, and party insiders, many of whom made only down payments before disappearing. Reselling these units has proved difficult.

Take the example of a six-storey luxury project launched in late 2023 on six kathas of land on Road 7 in Baridhara Diplomatic Zone. In February, a former ruling party MP booked a 2,900 sq ft third-floor apartment at Tk57,000 per sq ft—totaling about Tk17 crore, payable in 15 instalments. The deed transfer was scheduled for June 2025.

However, after the Awami League was ousted on 5 August 2024, the MP went into hiding with his family. After paying six instalments, he stopped making payments and informed the developer in November that he would no longer proceed, asking for a refund and for the apartment to be resold.

Marufur Rahman, supervising engineer of the project, told TBS, "The former MP from Cox's Bazar has since been arrested. We're now trying to resell the unit."

He added that of the six apartments in the project, three were booked by two former MPs and a party whip—each of whom paid six instalments before cancelling. The firm is now working to resell the units and process refunds.

A 26 April site visit showed the building is nearly complete, with only interior work pending. Each apartment includes two ground-floor parking spaces, imported oak wood doors and windows fitted with premium foreign float glass, and Italian marble flooring. Units feature three large bedrooms, a separate servant's room, and two north-facing balconies. The rooftop hosts a swimming pool and six remote-controlled umbrellas from Switzerland that automatically open in the rain.

This is just one of many high-end developments hit hard by the political upheaval.

A managing director of a major real estate firm, speaking anonymously, said, "Projects like these typically attract politicians, top business people, and bureaucrats. Since last August, investment has sharply declined."

He added, "Many buyers—former MPs, ministers, and party leaders—are either in hiding or have had their accounts frozen. Without access to funds, they've cancelled bookings."

Sales plunge across luxury segment

High-end apartment projects are mostly concentrated in Dhaka's upscale areas—Gulshan, Banani, Baridhara, Dhanmondi, Bashundhara, Niketan, and Nikunja.

According to Gulshan Sub-Registry Office records, 728 luxury flat deeds—priced between Tk6 crore and Tk21 crore—were registered between January and July 2024, amounting to about Tk8,000 crore in transactions.

In stark contrast, from August 2024 to March 2025, only 39 luxury apartment deals were registered. Of these, just 21 were signed between January and March 2025, including only six in Gulshan.

Data from the Directorate of Registration show that Tk21,000 crore in luxury flat transactions were recorded in 2023, compared to Tk19,000 crore in 2022, Tk15,500 crore in 2021, Tk14,000 crore in 2020, and Tk12,000 crore in 2019. The steady growth trend has now reversed sharply.

REHAB: Market struggling across all segments

Md Wahiduzzaman, President of the Real Estate & Housing Association of Bangladesh (REHAB), told TBS, "It's not just luxury apartments—mid-range and regular units are also struggling. Developers are stuck with unsold inventory and frozen investments."

He cited internal company data showing more than 100 unsold luxury flats and over 2,000 unsold regular apartments in ongoing projects across Dhaka.

Buyers pulling out, sellers left in limbo

In June 2024, Benazir Ahmed, a three-time MP from Dhaka-20 (Savar-Dhamrai), signed a deal to buy a six-storey house on five kathas of land in Bashundhara's Block 'E' for Tk7.5 crore, paying Tk50 lakh in advance. The balance was due by December.

However, in late August, he informed the seller through an intermediary, Oziul Islam Roman, that he would not proceed and requested a 90% refund.

"We've been unable to find a new buyer since the cancellation," Roman said. "The Canada-based owner is now willing to sell for Tk7 crore."

A similar case unfolded at Bashundhara Riverview Project near the Dhaka-Mawa Expressway in Postogola. A local AL leader had signed a Tk3.5 crore deal for a five-storey house on Road 17, paying a Tk30 lakh advance. After 5 August, he vanished. Seller Jahangir Hossain said the deed had been registered, making it impossible to cancel or resell without the buyer's cooperation.

New project launches dry up

Top developers—such as SHANTA Holdings, Southbridge Real Estate, Building Technologies & Ideas, Concord, Navana, Sheltech, Rangs, Dom-Inno, and others—now face waning buyer interest, making new launches risky.

Amalendu Biswas, General Manager of Sales at Rangs Properties, said, "Most of our current units are sold, but we're holding off on new launches due to the downturn."

Former REHAB director Naimul Hassan said the industry is experiencing its worst slowdown in years. He urged government intervention to stabilise the sector.

"The flow of undisclosed money—a major driver of the real estate market—has dried up," he said. He recommended allowing such funds to be invested in housing again, alongside new tax incentives from the National Board of Revenue (NBR).

Govt acknowledges constraints

Md Nazrul Islam, secretary at the Ministry of Housing and Public Works, said there is little the ministry can do to support the luxury housing market.

"If someone earns and spends legally, the government has no objection—we encourage it," he said. "But beyond that, there's not much scope for intervention."